DAP, MAP and potash were all lower on the week.
- DAP $91.33 below year-ago pricing -- higher $1.24/st on the week to $480.81/st.
- MAP $99.01 below year-ago -- lower $4.58/st this week to $492.93/st.
- Potash $138.30 below year-ago -- lower $1.63/st this week to $344.06/st.
- The average cash corn price figured in to P&K this week is $3.39 per bushel.
The national average corn basis firmed 3 cents from last week to 4 cents above September futures. The national average cash corn price fell 19 3/4 cents from last week to $3.42. Basis is softer than the three-year average, which is 34 cents above futures for this week.
This week Pro Farmer held its annual Leading Edge Conference in Des Moines. I have compiled some important points from my presentation and written up some thoughts based on conversations with farmers and attendees. Click here to read my post on P&K.
Phosphate move lower this week. Kansas DAP fell $24.30 and Iowa, Minnesota and Michigan each fell close to $20 by the short ton. Illinois was our only gainer in this week's survey, adding $1.52 per short ton as Indiana and the Dakotas were unchanged. Kansas led MAP declines, falling $17.90 and was followed closely by a $17.80 per short ton falloff in Illinois MAP. Michigan MAP firmed $10.54 but remains within $4.00 of our regional average price. Other states were within a few bucks of unchanged and Indiana and Wisconsin are unchanged from last week.
Potash continued lower falling $1.69. That was led by declines of about 9 bucks per short ton in Michigan, Missouri and Minnesota. Iowa led potash gains, firming $6.24 to $362.71. That will likely prove to be an unsustainable level as this week's Iowa bid is $22 above the regional average. Other states were little changed on the week with Indiana steady with last week.
As with nitrogen, we believe this week's post-application price action to be a sign of strong inventories held by wholesalers and retailers alike across the Midwest which suggests declining prices near-term. If demand for P&K outruns expectations, prices will surely turn higher as the segment looks to capture what revenue it can. That means we need to have fall P&K booked in advance of demand-based upside potential.
By the Pound --
The following is an updated table of P&K pricing by the pound as reported to your Inputs Monitor for the week ended July 15, 2016.
DAP is priced at 49 1/2 cents/lbP2O5; MAP at 45 1/2 cents/lbP2O5; Potash is at 28 cents/lbK2O.
P&K pricing by the pound -- 7/21/2016